HBD has invested in building a sophisticated and easy to use website that helps to demystify the process of buying a diamond engagement ring. We have also invested in different targeting strategies to identify how to recruit customers cost effectively.
Wordwide diamond sales hit $82bn (£62bn) in 2016. High Street sales are having to accommodate a rapid increase in online sales. Buyers of engagement rings are typically younger and have grown up with the internet explosion and are generally more comfortable with buying high value items online. Buyers are typically inexperienced in buying diamonds and so HBD has been designed with the aim of simplifying the whole process online.
HBD plan to create a disruptive business model avoiding the high cost of retail showrooms, holding no stock, cash with order and enjoying 30 day credit terms. Having invested in creating an e-commerce platform, the business has extensively tested alternative customer recruitment strategies and we believe we now have a strong and resilient business generation model with an extremely low cost base.
New funding will be invested into running high volume marketing campaigns to achieve high level of growth. The plan is to invest heavily in sales generation and become a main player in the UK Market. At this point the business aims to exit either to Private Equity or to an existing High Street retailer who can leverage their existing infrastructure and capitalise on both retail and online opportunities.
Disclosure: Shareholder and commercial loans exist